3b. Why Businesses Train & Develop Employees

What are the reasons why businesses may invest time and money into training and developing workers?

• Shows employees that they are valued

• Keeps employees skills & knowledge up to date

• Helps to identify mistakes or inefficient

• Improves the confidence of employees

• Meet legal requirements

Why is ongoing training essential as technology develops?

It ensures that workers are able to use new technology effectively, helping them stay up to date with advancements and maintain productivity

How can businesses help specialist staff stay updated on technology?

Specialist staff can attend technology-specific external courses (sometimes provided by the supplier), follow technology news and blogs, attend conferences, or join industry groups and forums to stay up to date

How do training and development help businesses with employee motivation and retention?

By improving their skills and career prospects (potential for growth and advancement in one’s career) which can lead to higher job satisfaction. This, in turn, helps improve retention by reducing turnover and encouraging long-term loyalty

What is the formula for staff retention rate?

(Number of Employees remaining in the Business during the Period ÷ Total Number of Employees) x 100

What does a higher percentage of staff retention rate indicate?

That a business is successful in retaining its workers

How can training and development impact employee motivation?

Well trained employees are likely to be motivated because they recognize that their employer is investing in their development

Motivation theory suggests that employees work more enthusiastically at tasks they are good at

• For example, training in quality management can lead employees to focus on improving the standard of the goods they produce

How does training impact employee retention?

If motivation is improved through better training, labour retention (the ability of a business to retain its employees over time) is likely to increase

Employees who feel they are improving in their job are more likely to stay with the business, even if another company offers higher pay, because they want to continue developing in their current role